(Bloomberg) -- Health-care billing technology provider Cedar Cares Inc. said it has raised financing that values it at $3.2 billion, more than four times its value in a funding round last year.
The $200 million investment was led by Tiger Global Management, with participation from Andreessen Horowitz, Thrive Capital and Concord Health Partners.
Cedar’s clients include hospital networks, which use its technology to make it easier for patients to make payments online. Customers can receive text alerts and interact with chat bots to streamline the billing process.
Andreessen Horowitz decided to invest because the health-care financial system is broken, said Scott Kupor, a managing partner at the venture firm. “It’s just a mess,” Kupor said, with “a silly customer experience.” He sees Cedar changing that.
The New York-based company, which saw strong growth this past year, raised financing in 2020 at a $727 million valuation, according to the company. With the new funding, the company has raised a total of $350 million.
Dr. Florian Otto, Cedar’s co-founder and chief executive officer, said the coronavirus pandemic has motivated health-care businesses to become more efficient and use products such as Cedar’s. The crisis has “shown how important it is to invest in the digital experience,” he said.
Otto said the company will use the financing to grow, including spending more on marketing and sales.
The company has had acquisition attempts, but Cedar has no imminent plans, Otto said. “We of course have a lot of inbound investment interest,” he said, adding that the company isn’t engaging in talks.
While most large venture-backed businesses have their eye on an initial public offering, Cedar isn’t one of them, Otto said. “I have no idea whether we will go public.”
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